This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Olympian Power of PepsiCo

NEW YORK ( TheStreet) -- The Olympics are going strong in Russia and one of the big advertisers, PepsiCo (PEP - Get Report), will report its quarterly results before the markets open Thursday. Investors hope the company will step up to the winners platform with news of "gold medal" earnings per share and sales growth.

Pepsi's behemoth beverage division is somewhat overshadowed by its even healthier snacks business. Guess who's watching and listening carefully to the earnings call about that segment of Pepsi's operations?
None other than Nelson Peltz, the legendary activist investor.

As I commented in a recent article, early last year Peltz's Trian Management Fund amassed stakes of more than $1 billion in Pepsi and Mondelez International (MDLZ) "apparently with the hope of merging the snacks business of PepsiCo with the fast-growing spin-off of Kraft Foods (KRFT)."

Peltz may have given up on that idea for now but he hasn't stopped criticizing PepsiCo management. Peltz has publicly stated he'll continue to push PepsiCo to spin off its faster-growing snacks unit from its beverage business.

Just the publicity alone helped shares of PEP to almost reach its 52-week high of $87.06 before falling more than 10% to the intraday low of $78.28 on Feb. 4. Shares closed Wednesday at $81.49, down 1.5% for the year to date.

The one-year chart below shows us where the power of Pepsico and its stock price has been, including the most relevant simple moving averages (SMA) of the share price.

PEP Chart
data by YCharts

One thing the chart shows us: Shares have definitely fallen in 2014 below both the 50-day and 200-day moving average prices. Some technicians refer to this as "the death cross" but this hasn't deterred Pepsico's largest investors from holding tight.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PEP $104.21 0.18%
AAPL $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs